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How to Understand your Check Stubs

A pay stub is a portion of your payslip that records your periodic payments which can also be in the form of a carbon paper. People are ignorant of this important item, and therefore they tend to take a long time before cross-checking it and therefore they have problems with their funds. Details of your earnings, taxes, withholdings and other issues of interest are some of the contents of the check stubs that you should not miss. You are supposed to go through your check stubs to manage the funds that you will have at the payment period. Here are how you can go through your check stubs to understand them clearly.

Since the pay stub has details regarding all the financial information, details about the earnings should be read on top of the stub. You can conveniently manage your finances because the pay stub provides all the particulars of the earnings which include; names and contacts of the employer and the employer as well as the transaction dates. The check stubs also provide the gross payments showing how your earnings are before any deduction are, then it shows the net salary after taxes are deducted.

Taxes and other withholdings are other things that you should take time to evaluate on the check stubs. The federal and state taxes are the common types of taxes that must be deducted from your salary. Withholdings, in this case, will include the likes of social security and Medicare. The federal and state taxes are paid to the government only that the state tax varies from one state to another. The social security fund and Medicare is meant to help you in the older age and in times of health problems respectively.

After analyzing your earnings and other deductions from your salary, you are now left with the analysis of other characteristics in the check stub. The check stub provides you with the details of your total earnings all year round from the employer; this detail goes by the name “Year to Date.” The “Year to Date” also depicts the taxes and the withholdings that you have paid to the government. The “Year to Date” also shows the benefits that you have enjoyed in the form of reliefs on tax, insurance and time of payments.

You are in a position to account for your funds, and at the same time you will save the money. The moment it happens that you have extorted all of it then you do not mind because you know how much it was. When you get these check stubs, you should preserve them as they are a shred of evidence that you were paid.